delivering sustainable value 20% 32% 37% tel: +27 11 278 9656. 2% . 2% 8% china. south africa. usa....

Denver Gold Show September 2014

Delivering Sustainable Value

Disclaimer

Certain statements included in this presentation, as well as oral statements that may be made by Sibanye Gold, or by officers, directors or employees acting on their behalf related to the subject matter hereof, constitute or are based on forward-looking statements. Forward-looking statements are preceded by, followed by or include the words “may”, “will”, “should”, “expect”, “envisage”, “intend”, “plan”, “project”, “estimate”, “anticipate”, “believe”, “hope”, “can”, “is designed to” or similar phrases. These forward looking statements involve a number of known and unknown risks, uncertainties and other factors, many of which are difficult to predict and generally beyond the control of Sibanye Gold, that could cause Sibanye Gold‘s actual results and outcomes to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. Such risks, uncertainties and other factors include, among others, Sibanye Gold’s operations, Sibanye Gold’s ability to implement its strategy and any changes thereto, Sibanye Gold’s future financial position and plans, strategies, objectives, capital expenditures, projected costs and anticipated cost savings and financing plans, as well as projected level of gold price and other risks. Sibanye Gold undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this presentation or to reflect any change in Sibanye Gold’s expectations with regard thereto.

In accordance with the requirements imposed by the JSE, Sibanye Gold reports its reserves using the terms and definitions of the SAMREC Code (2007 edition). There are differences between the SAMREC Code and the Security and Exchange Commission’s Industry Guide 7. Mineral or ore reserves, as defined under the SAMREC Code, are divided into categories of proved and probable reserves and are expressed in terms of tonnes to be processed at mill feed head grades, allowing for estimated mining dilution, recovery and other factors.

2

What differentiates Sibanye Gold • Significant free cash generation

• Committed and delivering on a benchmark dividend strategy

• South African focused

• Proactively addressing stakeholder issues to ensure success and sustainability

3 Uniquely positioned in the industry

20%

32%

37%

2% 2% 8%

ChinaSouth AfricaUSALuxembourgUnited KingdomOthers

* Source: J.P.Morgan Cazenove 29 August 2014

Corporate information

4

Major Sibanye Gold shareholders *

Gold One Limited 19.81%

Allan Gray Investment Council 10.58%

Public Investment Corporation 7.83%

Shares in Issue ADRs in issue

898 585 354 229 155 629

Market Cap R22.2 billion (US$2.1 billion)

Listings • JSE Limited share code: SGL • New York Stock Exchange ADR

programme share code: SBGL

Debt* R1.8 billion (US$167 million) of R4.5 billion facility

Contact details Libanon Business Park 1 Hospital Road (off Cedar Avenue) Libanon, Westonaria, 1779 South Africa

Neal Froneman CEO

Tel: +27 11 278 9600 e-mail: [email protected]

James Wellsted Investor Relations

Tel: +27 11 278 9656 e-mail: [email protected]

Shareholder geographic distribution*

* Source: J.P.Morgan Cazenove 29 August 2014 * At 30 June 2014

South African focused

5 Concentrated and focused in the world class Witwatersrand goldfields

Gold Reserves

32.7 Moz

Uranium Reserves

102.83 Mlbs

Cooke acquisition

• Regional synergies - operational/infrastructure • Approximate five-year average annual production

of 250koz of gold and 500-570klbs of uranium • Unlocks 4Mozs gold and 43Mlb uranium from

Sibanye Gold TSFs – (WRTRP - 7Moz gold and 98Mlb uranium)

Wits Gold acquisition

• Secures key resources adjacent to Beatrix, which will extend Beatrix’s LoM

• Operational/infrastructure synergies enhance the value of Wits Gold’s advanced Southern Free State projects

• Beisa North and South provide critical mass to the Beisa uranium Section

• Burnstone provides a low cost growth option

6

Recent logical, value accretive acquisitions

Sibanye

Enhancing LoM, optimising asset utilisation and increasing ROIC

-

200 000

400 000

600 000

800 000

1 000 000

1 200 000

1 400 000

1 600 000

1 800 000

2 000 000

Ann

ual G

old

Prod

uctio

n (o

z)

SV4

Bloemhoek

Beisa

De Bron

Kloof drop down

Burnstone

WRTRP

Randfontein surface

Beatrix surface

Kloof surface

Driefontein surface

Cooke 4

Cooke 1-3

Beatrix u/g

Kloof u/g

Driefontein u/g

Underground reserves in LOM

Surface reserves in LOM

Feasibility study being undertaken or reviewed

Pre-feasibility study being undertaken or reviewed

(Phase 2)

Gold production profile

Project conversion required to sustain production profile 7

*Project profile is conceptual and subject to change on completion of detailed studies Assumptions: Gold price: 430,000 R/kg, Uranium 65 US$/lb and 10.50 ZAR:1US$ (real 2014 terms)

Global production ranking

8

0

1000

2000

3000

4000

5000

6000

Barri

ck

New

mon

t

Ang

loG

old

Kinr

oss

Gol

d C

orp

New

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t

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ield

s

Sib

any

e

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e

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ana

Ha

rmon

y

Afri

can

Barri

ck

Ann

ual G

old

Prod

uctio

n (0

00oz

)

A top ten global gold producer

-

200 000

400 000

600 000

800 000

1 000 000

1 200 000

1 400 000

1 600 000

1 800 000

Ann

ual U

rani

um P

rodu

ctio

n (lb

)

Beisa

WRTRP

Cooke 4

Cooke 1-3



Underground reserves

A substantial uranium business

Uranium production profile

9


Significant Free Cash Generation

Significant free cash generation H1 2014 FY2013 H1-14/FY13

Production ‘000oz 712 1,430 49.8%

Total cash cost US$/oz 848 885 (4.2)%

All-in cost US$/oz 1,017 1,148 (11.4)%

EBITDA/Operating profit US$m 327 767 42.6%

Cash generated by operations

US$m 364 775 47%

Dividend US$m ~42 79 53.2%

Net Debt US$m 58 48 120.8%

Net debt/EBITDA Mulitiple 0.09 0.06 150%

Gold Reserves Moz 32.70 19.73 166%

Uranium Reserves Mlbs 102.83 43.16 238%

11 Solid operating and financial metrics

Rand gold price relatively stable – a natural hedge

Weakening ZAR provides revenue protection

12

Source: Inet: 13 September 2014

0.65

0.70

0.75

0.80

0.85

0.90

0.95

1.00

1.05

1.10

Jan2013

Feb2013

Mar2013

Apr2013

May2013

Jun2013

Jul2013

Aug2013

Sep2013

Oct2013

Nov2013

Dec2013

Jan2014

Feb2014

Mar2014

Apr2014

May2014

Jun2014

Jul2014

Aug2014

Sep2014

Rela

tive

Gol

d Pr

ice

Perfo

rman

ce

Gold (US$/oz) Gold (R/oz)

Substantially outperforming our peers, the gold price and the indices

Sibanye relative share price performance

13

Source: Bloomberg: 1 September 2014

-20

0

20

40

60

80

100

120

140

160

Jan 2014 Feb 2014 Mar 2014 Apr 2014 May 2014 Jun 2014 Jul 2014 Aug 2014 Sep 2014

Sibanye Gold JSE All Share JSE Gold Index Gold $/oz Gold R/kg

Peer benchmarking

Source: Bloomberg consensus forecasts 9 September 2014

14

0.0

100.0

200.0

300.0

400.0

500.0

600.0

US$/

oz

EV/Reserve oz

0.0

1.0

2.0

3.0

4.0

5.0

%

Dividend Yield

-10.0

0.0

10.0

20.0

30.0

40.0

X

P/E ratio

0.0

10.0

20.0

30.0

40.0

50.0

60.0

%

Net debt/Market Capitalisation

Still offering significant relative value

Delivering on a Benchmark Dividend Yield

Dividends underpin the strategy

• Regular, consistent dividends are a key strategic imperative and differentiator

• Sibanye will strive to maintain a benchmark dividend in the mining sector

• Organic project development and acquisitions will be directed by the ability to sustain or enhance the dividend strategy

• Projects and acquisitions will be funded from cash flow after dividends or alternative funding options will be considered where appropriate

16 Ability to maintain superior dividends defines who we are

Production profile – reserves only

17

-

200 000

400 000

600 000

800 000

1 000 000

1 200 000

1 400 000

1 600 000

1 800 000

2 000 000

Estim

ated

Ann

ual G

old

Prod

uctio

n (o

z)

Randfontein surface

Beatrix surface

Kloof surface

Driefontein surface

Cooke 4

Cooke 1-3

Beatrix u/g

Kloof u/g

Driefontein u/g

Project conversion required to sustain production profile




Production profile – including feasibility studies

18

-

200 000

400 000

600 000

800 000

1 000 000

1 200 000

1 400 000

1 600 000

1 800 000

2 000 000

Estim

ated

Ann

ual G

old

Prod

uctio

n (o

z)

De Bron

Kloof drop down

Burnstone

WRTRP

Randfontein surface

Beatrix surface

Kloof surface

Driefontein surface

Cooke 4

Cooke 1-3

Beatrix u/g

Kloof u/g

Driefontein u/g





(Phase 2)


Production profile – including pre-feasibility studies

19

-

200 000

400 000

600 000

800 000

1 000 000

1 200 000

1 400 000

1 600 000

1 800 000

2 000 000

Estim

ated

Ann

ual G

old

Prod

uctio

n (o

z)

SV4

Bloemhoek

Beisa

De Bron

Kloof drop down

Burnstone

WRTRP

Randfontein surface

Beatrix surface

Kloof surface

Driefontein surface

Cooke 4

Cooke 1-3

Beatrix u/g

Kloof u/g

Driefontein u/g






(Phase 2)


Capital profile – reserves only

20 Stable capital cost per ounce produced

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50

100

150

200

250

300

350

400

450

500

-

500 000

1 000 000

1 500 000

2 000 000

2 500 000

3 000 000

3 500 000

4 000 000

4 500 000

5 000 000

US$/oz

Estim

ated

Cap

ital C

ost (

R000

)

SV4

Bloemhoek

Beisa

De Bron

Kloof drop down

Burnstone

WRTRP

Randfontein surface

Beatrix surface

Kloof surface

Driefontein surface

Cooke 4

Cooke 1-3

Beatrix u/g

Kloof u/g

Driefontein u/g

US$/oz




Estimated capital profile – including feasibility studies


-

50

100

150

200

250

300

350

400

450

500

-

500 000

1 000 000

1 500 000

2 000 000

2 500 000

3 000 000

3 500 000

4 000 000

4 500 000

5 000 000

US$/oz

Estim

ated

Cap

ital C

ost (

R000

)

SV4

Bloemhoek

Beisa

De Bron

Kloof drop down

Burnstone

WRTRP

Randfontein surface

Beatrix surface

Kloof surface

Driefontein surface

Cooke 4

Cooke 1-3

Beatrix u/g

Kloof u/g

Driefontein u/g

US$/oz

Feasibility



(Phase 2)


Estimated capital profile – including pre-feasibility studies


-

50

100

150

200

250

300

350

400

450

500

-

500 000

1 000 000

1 500 000

2 000 000

2 500 000

3 000 000

3 500 000

4 000 000

4 500 000

5 000 000

US$/oz

Estim

ated

Cap

ital C

ost (

R000

)

SV4

Bloemhoek

Beisa

De Bron

Kloof drop down

Burnstone

WRTRP

Randfontein surface

Beatrix surface

Kloof surface

Driefontein surface

Cooke 4

Cooke 1-3

Beatrix u/g

Kloof u/g

Driefontein u/g

US$/oz



(Phase 2)




-

50

100

150

200

250

300

350

400

450

500

-

500 000

1 000 000

1 500 000

2 000 000

2 500 000

3 000 000

3 500 000

4 000 000

4 500 000

5 000 000

US$/oz

Estim

ated

Cap

ital C

ost (

R000

)

SV4

Bloemhoek

Beisa

De Bron

Kloof drop down

Burnstone

WRTRP

Randfontein surface

Beatrix surface

Kloof surface

Driefontein surface

Cooke 4

Cooke 1-3

Beatrix u/g

Kloof u/g

Driefontein u/g

US$/oz

Estimated US$/oz capital profile


US$/oz



Capital cost US$/oz

(Phase 2)




Estimated operating cash cost profile (US$/oz)*

24 Stable cost profile – sustained operational profitability

*Unit cash costs assuming all projects are progressed, ZAR10.50:US$1

400

500

600

700

800

900

1 000

1 100

1 200

Cas

h C

ost (

US$/

oz)

Estimated total cost profile (US$/oz)*

25 Total cost below current spot gold prices for foreseeable future

*Unit costs assuming all projects are progressed, real model, ZAR10.50:US$1 *Includes direct operational/project costs, excludes corporate, financing and other costs

-

200

400

600

800

1 000

1 200

1 400

US$/

oz

Total Capital Costs(US$/oz)

Total OperatingCash Costs (US$/oz)

Spot Gold Price(US$/oz)(2014/09/15)

Dividend sustainability model

26

-

1 000 000

2 000 000

3 000 000

4 000 000

5 000 000

6 000 000

Estim

ated

Fre

e C

ash

Flow

afte

r Cap

ital a

nd Ta

x (R

000)

Reserves only

Total including all projects

2013 Dividend escalatedby 17%2013 dividend escalated to account for extra shares in issue

Able to fund value accretive pipeline without risking dividend

*For illustrative purposes assuming all projects are implemented Includes direct operational/project costs, excludes corporate, financing and other costs Gold price: 430,000 R/kg, Uranium 65 US$/lb and 10.50 ZAR:1US$ (real)

Addressing Stakeholder Issues

Sibanye vision statement

SUPERIOR VALUE CREATION FOR ALL OUR STAKEHOLDERS

28

through a culture of caring

Sibanye values: we CARE about

• Safe production

• Our stakeholders

• Our environment

• Our company

• Our future

29 CARE underpins the way we do business and interact with each other

Implementing the CARE culture

• We are actively addressing the issues impacting on our employees:

• migrant labour – explored through alternative shift arrangements and bus in and bus out concepts

• sustainable employment – investment in projects and growth

• indebtedness – personal financial education and debt consolidation - “Care for Imali” programme started

• housing/home ownership – hostel conversions, house builds, home ownership programme

• unrealistic wage demands, standards of living and company allignment – aligning and rewarding employees in line with investors and management – gain share and profit share schemes

• community unrest – direct interaction with the communities bypassing incompetent muncipalities

30 Continuious communication, transformation, education and training

Platinum

Platinum rationale

• External factors have created the potential for value accretive platinum opportunities

• About leveraging our operating model and capabilities to enhance stakeholder value, rather than commodity or risk diversification

• The platinum industry shares many similarities to the gold industry facilitating skills leverage

• medium depth, tabular, hard rock mining • predominantly labour intensive, conventional mining methods • Socio-economic climate with which we are familiar

• Consensus long term PGM price forecasts remain attractive but will not be the basis of determining acqusition value

32 Leveraging our skills and knowledge base to create value for all stakeholders

Platinum review and current status

• Potential acquisitions are carefully assessed and will have to meet all internal investment criteria:

• must support the dividend strategy • must be cash flow enhancing at current commodity prices

• A number of platinum opportunities have been pursued and several abandoned as they did not meet Sibanye’s investment criteria

• A few remaining opportunities will still be evaluated, but processes are likely to continue well into 2015

• An entry into the platinum industry remains potentially value enhancing, but is not a strategic necessity

33 Entry into platinum sector must support the dividend strategy

Conclusion

1. Sibanye’s cash generative gold assets are high quality and fundamental to its strategic intent to sustain its dividend profile

2. Existing organic projects are able to sustain the current production profile without compromising Sibanye’s dividend strategy

3. Acquisitions will only be considered if they are earnings enhancing on an EPS basis

4. At the appropriate acqusition price platinum platinum assets could provide a value creative opportunity to leverage Sibanye’s operating model and proven mining capability

34 Sibanye’s strategy is driven by its ability to maintain superior dividends

Questions

delivering sustainable value 20% 32% 37% tel: +27 11 278 9656. 2% . 2% 8% china. south africa. usa....

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